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Condensed balance sheet and income statement data for Jergan Corporation are presented here. Jergan Corporation Balance Sheets December 31 2020 2019 2018 Cash $ 30,100
Condensed balance sheet and income statement data for Jergan Corporation are presented here.
Jergan Corporation Balance Sheets December 31 | |||||||||
2020 | 2019 | 2018 | |||||||
Cash | $ 30,100 | $ 17,500 | $ 18,100 | ||||||
Accounts receivable (net) | 49,000 | 45,400 | 47,100 | ||||||
Other current assets | 89,500 | 95,400 | 64,400 | ||||||
Investments | 54,400 | 70,300 | 45,700 | ||||||
Plant and equipment (net) | 499,200 | 370,100 | 357,100 | ||||||
$722,200 | $598,700 | $532,400 | |||||||
Current liabilities | $84,400 | $80,300 | $69,100 | ||||||
Long-term debt | 144,500 | 86,000 | 50,100 | ||||||
Common stock, $10 par | 321,000 | 317,000 | 297,000 | ||||||
Retained earnings | 172,300 | 115,400 | 116,200 | ||||||
$722,200 | $598,700 | $532,400 |
Jergan Corporation Income Statement For the Years Ended December 31 | ||||||
2020 | 2019 | |||||
Sales revenue | $737,500 | $607,000 | ||||
Less: Sales returns and allowances | 40,500 | 30,600 | ||||
Net sales | 697,000 | 576,400 | ||||
Cost of goods sold | 426,400 | 371,000 | ||||
Gross profit | 270,600 | 205,400 | ||||
Operating expenses (including income taxes) | 186,960 | 153,524 | ||||
Net income | $ 83,640 | $ 51,876 |
Additional information:
1. | The market price of Jergans common stock was $7.00, $7.50, and $8.50 for 2018, 2019, and 2020, respectively. | |
2. | You must compute dividends paid. All dividends were paid in cash. |
(a) Compute the following ratios for 2019 and 2020. (Round Asset turnover and Earnings per share to 2 decimal places, e.g. 1.65. Round payout ratio and debt to assets ratio to 0 decimal places, e.g. 18%. Round all other answers to 1 decimal place, e.g. 6.8 or 6.8%.)
2019 | 2020 | |||||||
(1) | Profit margin | % | % | |||||
(2) | Gross profit rate | % | % | |||||
(3) | Asset turnover | times | times | |||||
(4) | Earnings per share | $ | $ | |||||
(5) | Price-earnings ratio | times | times | |||||
(6) | Payout ratio | % | % | |||||
(7) | Debt to assets ratio | % | % |
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